Sealmatic India Limited

Industrials — Metal Fabrication · BSE

₹420.00−₹10.00 (−2.33%)

DalalBaazaar Score

44 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by high debt relative to equity, negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: Reasonable but unspectacular business quality, with both sales and profits growing well. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:06 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

Company site ↗

The 60-second version of Sealmatic India Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Sealmatic India Limited designs and manufactures mechanical seals and associated products in India and internationally.

IndustryMetal Fabrication

SectorIndustrials

Employees359

Annual revenue₹102 Cr

How does it make money?

Turns over ₹102 Cr a year. Of every ₹100 of sales, about ₹10 reaches shareholders as profit, with ₹18 left at the operating level before interest, tax and depreciation. Each of its 359 employees supports ₹28.3 lakh of revenue a year, the signature of a people-led business.

EBITDA margin18.4%

Net margin10.1%

Revenue / employee₹28.3 lakh

Who are its competitors?

The closest listed comparisons in its industry are TATA STEEL LIMITED, JSW STEEL LIMITED, HINDALCO INDUSTRIES LTD, VEDANTA LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

TATA STEEL LIMITEDP/E 19.8x · ROE 10.8%

JSW STEEL LIMITEDP/E 12.0x · ROE 24.7%

HINDALCO INDUSTRIES LTDP/E 12.3x · ROE 12.0%

VEDANTA LIMITEDP/E 10.4x · ROE 18.7%

What is its competitive advantage?Little sign of one

Returns on capital of 12.8% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

ROCE12.8%

ROE9.0%

Peer median ROE18.7%

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +77% while net margin moved -47% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+77%

Margin effect-47%

DalalBaazaar Score

44/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ P/E of 44.2x is demanding — it needs sustained high growth to justify
✗ P/E is 23% above its own historical median of 36.1x — expensive by its own standards

Quality vs. Valuation

Company Quality

47/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

29/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

44.2x

3Y Median

36.1x

40 monthly readings · mean 35.8x · range 18.6x–59.7x

Sector Median

12.2x

median of 4 sector peers

⚠️Current valuation is approximately 23% above its 3y median of 36.1x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

⚠️Against its sector it trades 264% above the peer median of 12.2x.

vs. its own history

Expensive

36.1x median over 40 months · +23%

vs. sector peers

Expensive

12.2x median of 4 peers · +264%

vs. generic bands

Expensive

Above 35x

P/E (Trailing)

44.2x

P/B

4.10x

EV/EBITDA

24.5x

PEG

—

Dividend Yield

0.26%

What's Good / What's Bad

🟢 What's Going Well1

Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention7

Margins are compressing
EBITDA margin has slipped from 28.3% to 18.4% over 3 years.
Debt is rising
Total debt is up 92% over 3 years — worth checking what it funded.
Free cash flow is negative
The business is not currently covering its capital spending from operations.
Return on equity is falling
ROE has dropped from 13.9% to 9.3% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 18.4% to 12.8% — often a sign of competition or overexpansion.
Inventory building faster than sales
Inventory is up 153% against revenue growth of 77% — stock may not be moving.
Valuation above its historical average
At 44.2x the stock trades 23% above its own median of 36.1x.

Red Flags

5 items require attention · 5 high

🔴Debt has risen sharplyFinancial
Total debt is up 92% over 3 years, from ₹5 Cr to ₹9 Cr.
🔴High leverageFinancial
Debt/Equity of 4.61x — earnings must service borrowings before shareholders see anything.
🔴Free cash flow negative for 4 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 9.8 points, from 28.3% to 18.4%.
🔴Inventory building faster than salesFinancial
Inventory up 153% against revenue up 77% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 28.3% to 18.4%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Leverage amplifies any setback
Debt/Equity of 4.61x. Interest is payable whether or not the business has a good year.
The price already assumes success
The stock trades 23% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
Returns on shareholder capital are falling
ROE has dropped from 13.9% to 9.3%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 16% a year✓ 20.9% CAGR
Latest reported year was 67.8%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 16%✓ 18.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹6 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.5x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 10%✓ 12.8%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

5 / 11 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✗ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

3 good · 5 neutral · 3 weak

Market Cap

₹456 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

44.2x

Expensive

Expensive — verify against sector peers

P/B Ratio

4.10x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹9.5

Profitable

Profitable on a per-share basis

ROE

9.0%

Moderate

Moderate capital efficiency

ROCE

12.8%

Moderate

Moderate return on the capital in the business

Debt/Equity

4.61x

High

High leverage

Revenue Growth (YoY)

67.8%

Healthy

Healthy top-line growth

Profit Growth (YoY)

190.3%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.26%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹6 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹420

ROA

5.1%

Average

Average asset productivity

Operating Margin

21.0%

Good

Healthy core-business profitability

Net Margin

9.3%

Average

Average bottom-line conversion

Current Ratio

3.73

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.13

Defensive

Steadier than the market

52W Range Position

69%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

412.3 / 399.8

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

57.0

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹58 Cr	₹70 Cr	₹100 Cr	₹102 Cr	+20.9%
EBITDA	₹16 Cr	₹16 Cr	₹25 Cr	₹19 Cr	+4.9%
EBITDA Margin	28.3%	22.7%	24.9%	18.4%	—
PAT (Net Profit)	₹11 Cr	₹10 Cr	₹16 Cr	₹10 Cr	-2.0%
EPS	₹12.44	₹9.08	₹17.58	—	—
ROE	13.9%	11.2%	15.5%	9.3%	—
ROCE	18.4%	15.3%	20.3%	12.8%	—
Total Debt	₹5 Cr	₹3 Cr	₹5 Cr	₹9 Cr	+24.3%
Free Cash Flow	-₹5 Cr	-₹21 Cr	-₹9 Cr	-₹6 Cr	—

🟢 Revenue has grown at 20.9% a year over 3 years.

🟢 EBITDA has grown at 4.9% a year over 3 years.

🔴 EBITDA Margin has fallen from 28.3% to 18.4% over 3 years (-9.8 pts).

🔴 PAT (Net Profit) has shrunk at 2.0% a year over 3 years.

🔴 ROE has fallen from 13.9% to 9.3% over 3 years (-4.7 pts).

🔴 ROCE has fallen from 18.4% to 12.8% over 3 years (-5.5 pts).

🔴 Total Debt has grown at 24.3% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹143 Cr

Total Liabilities

₹31 Cr

Total Debt

₹9 Cr

Cash & Equivalents

₹6 Cr

Operating Cash Flow

-₹1 Cr

Capex

-₹5 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

72.5%

Corporate Actions

Dividend Rate

₹1.1

Ex-Dividend Date

17 Jul 2026

Peer Comparison

Company	P/E	ROE
TATA STEEL LIMITED	19.8x	10.8%
JSW STEEL LIMITED	12.0x	24.7%
HINDALCO INDUSTRIES LTD	12.3x	12.0%
VEDANTA LIMITED	10.4x	18.7%

Recent News

3 mixed3 general

Sealmatic India Share Price Near 52-Week High, Up 5.89%

Univest, 06 OctPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Sealmatic India Share Price rises 8.50% on valuation focus

Univest, 05 OctPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Sealmatic India Limited Confirms Non-Applicability of Large Corporate Disclosure Requirements for FY26

scanx.trade, 06 Apr

SEALMATIC Stock Price and Chart — BSE:SEALMATIC

TradingView, 01 Mar

Sealmatic India Limited Share Price

Upstox, 25 Mar

Sealmatic India expands to Saudi Arabia with new partnership, shares dip

BusinessLine, 15 OctPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

🟡Business QualityAdequate10.5/20

🟡Financial HealthAdequate9.9/20

🟡GrowthModest9.3/20

🔴ProfitabilityWeak5.8/15

🔴ValuationDemanding4.9/15

🔴RiskHigh4/10

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 5 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 16% a year20.9% CAGR
✓EBITDA margin holds above 16%18.4%
✗Free cash flow remains positive-₹6 Cr
✓Debt / EBITDA stays below 2x0.5x
✓ROCE stays above 10%12.8%